British Trade Secretary Liam Fox told CNBC on Wednesday that he believed there was a "good chance" of securing an exit deal with the European Union.
UK lawmakers are proposing alternative plans to the current agreed deal with the EU after it was soundly rejected in Parliament. Options include seeking an extension to the U.K.'s current exit date of March 29.
Sterling has risen above $1.30 hitting a 10-week high after suggestions that a procedure in the House of Commons to delay Brexit has been gaining support among lawmakers.
The U.K. international trade secretary said he didn't think any extension was likely but he had seen some movement towards compromise over May's original deal among U.K. MPs.
"There's a good chance that we'll get it because there is a growing awareness both in Europe and and the U.K, perhaps more importantly inside Westminster, that under the law European treaties will no longer apply after March 29, so unless we get a deal, then no deal that everyone wants to avoid will happen," Fox told CNBC at the World Economic Forum in Davos.
"Since the defeat of the government in its original proposals there has been a very strong impetus to work for a deal from those who are remain and those who are leave in the referendum," he added.
Fox said extending Britain's exit process would also disrupt European democracy.
"If you extend the Article 50 process to give Britain more time in negotiation, it is likely to trigger Britain's participation in the next European elections and I can't see that that it is to the advantage to have 70 European MPs who don't really want to be there, and I don't think it would go down well with U.K. voters to have the expense of such an election," he said.